financetom
Business
financetom
/
Business
/
Unilever making 'drastic' changes in Indonesia amid boycotts
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Unilever making 'drastic' changes in Indonesia amid boycotts
Oct 31, 2024 11:40 PM

LONDON (Reuters) - Unilever ( UL ) will make "drastic" changes in Indonesia, its finance chief said on Thursday as consumers boycott multinational brands in response to the war in Gaza and exacerbate the business' existing distribution problems.

Unilever ( UL ), which makes Dove soap, Knorr stock cubes and Ben & Jerry's ( UL ) ice cream, first said in February that fourth-quarter sales growth in Southeast Asia had been hurt by shoppers in Indonesia boycotting brands of multinational companies "in response to the geopolitical situation in the Middle East."

Speaking to analysts after delivering slightly better-than-expected quarterly sales, Chief Financial Officer Fernando Fernandez said the company would aim to make its brands "more contemporary" given the "significant societal change" going on. He said he expected to see an improvement in the next six months.

Barclays analyst Warren Ackerman noted on the call that the group's Indonesian business has underperformed for nearly a decade.

"Why should investors believe the turnaround this time will be any different storms we've seen in the past?" he asked.

Unilever's ( UL ) Indonesia unit reported an 18% revenue drop in the third-quarter, driven by a decline in volumes.

The company's CEO Hein Schumacher acknowledged "long standing issues" in the country. He said Unilever ( UL ) was "making in Q3 and Q4 a significant intervention in Indonesia that is not going to yield results in the next quarter."

CFO Fernandez said a revamp of the distribution system was underway to stabilise prices and the group's efforts were already yielding some results.

"We have been recovering part of the share losses we suffer due to the consumer backlash that is related to the geopolitical situation in Middle East, we have recovered around one quarter of the share losses," he said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Apple Supplier Foxconn Urged by Vietnam to Reduce Electricity Use Ahead of Summer Power Crunch
Apple Supplier Foxconn Urged by Vietnam to Reduce Electricity Use Ahead of Summer Power Crunch
May 21, 2024
06:49 AM EDT, 05/21/2024 (MT Newswires) -- Apple ( AAPL ) supplier Foxconn has been asked by the Vietnamese government to cut down on electricity use ahead of the summer months, Reuters reported Tuesday, citing unnamed sources. Foxconn, also known as Hon Hai Precision Industry, was asked to reduce its power usage by 30% to avoid repeating power failures that...
Consol Energy resumes shipments from marine terminal in Baltimore
Consol Energy resumes shipments from marine terminal in Baltimore
May 21, 2024
May 21 (Reuters) - Coal producer Consol Energy ( CEIX ) said on Tuesday shipments to international markets have resumed from its marine terminal in Baltimore. The terminal was shut in March following a bridge collapse in the Port of Baltimore. (Reporting by Mrinalika Roy in Bengaluru; Editing by Sriraj Kalluvila) ...
Black Sea CPC Blend oil daily loadings set to rise 12% in June
Black Sea CPC Blend oil daily loadings set to rise 12% in June
May 21, 2024
MOSCOW, May 21 (Reuters) - Black Sea CPC Blend oil exports via the Caspian Pipeline Consortium (CPC) pipeline system are set to rise to about 5.3 million metric tons in June from the 4.9 million planned for May, two sources familiar with the matter said. On a daily basis CPC Blend oil exports will rise by some 12% from May's...
Eagle Materials Fiscal Q4 Earnings Fall, Revenue Rises
Eagle Materials Fiscal Q4 Earnings Fall, Revenue Rises
May 21, 2024
06:54 AM EDT, 05/21/2024 (MT Newswires) -- Eagle Materials ( EXP ) reported fiscal Q4 diluted earnings Tuesday of $2.24 per share, down from $2.79 a year earlier. Analysts polled by Capital IQ expected $2.70. Revenue for the quarter ended March 31 was $476.7 million, up from $470.1 million a year earlier. Analysts surveyed by Capital IQ expected $491.5 million....
Copyright 2023-2026 - www.financetom.com All Rights Reserved